On September 28, 2026, the Illinois Department of Revenue (the “Department”) released draft proposed rules (the “Draft Proposed Rules”) implementing the Digital Asset Tax Act (the “Act”), which was enacted as part of Senate Bill 3019. Notably, the Draft Proposed Rules have not yet entered Illinois’ formal rulemaking process and the Department is accepting comments through October 30, 2026. The Act imposes a 0.2% tax on the value of a digital asset involved in a…
States are continuing to try to limit the scope of Public Law 86‑272 (“P.L. 86-272”), and a recently filed Wisconsin case highlights this trend. On January 28, 2026, Crutchfield Corporation and Crutchfield New Media, LLC (collectively, “Crutchfield Companies”) filed a declaratory judgment action in the Wisconsin Circuit Court for Dane County against the Wisconsin Department of Revenue, the Secretary of Revenue, and the Wisconsin Attorney General, challenging a Wisconsin administrative regulation that interprets P.L. 86‑272.…
A recent decision out of the Los Angeles County Superior Court marks a significant win for taxpayers involving the use of alternative apportionment and successful challenges to the Franchise Tax Board’s (“FTB”) regulations, which the court found to be inconsistent with the statute as applied. On February 26, 2026, the court in Smithfield Packaged Meats Corp. v. California Franchise Tax Board ordered the FTB (in a Proposed Statement of Decision, which becomes final after an…
In Matter of Charter Communications, Inc. v New York State Tax Appeals Tribunal, CV-24-0971 the New York Supreme Court, Appellate Division, Third Department (New York’s intermediate appellate court, the “Court”) recently held that Charter Communications, Inc. and its combined affiliates were not eligible for the reduced qualified emerging technology company (“QETC”) corporate franchise tax rate. The Court agreed that each member of a combined group must independently meet the QETC definition for the group to…